Americas News
Teekay Tankers Orders Four Fuel-Efficient LR2 Product Tankers
Teekay Tankers Ltd. [NYSE:TNK] (Teekay Tankers) say they have ordered the construction of four, fuel-efficient 113,000 dead-weight tonne (dwt) Long Range 2 (LR2) product tanker newbuildings with South Korea's STX Offshore & Shipbuilding Co., Ltd., (STX).
"The shift in global refining capacity east of the Suez Canal, development of new long-haul product tanker trading patterns, including the potential for increased U.S. exports, and a relatively modest orderbook, make the LR2 segment a particularly attractive growth area for Teekay Tankers," commented Bruce Chan, Teekay Tankers' Chief Executive Officer.
"With their fuel-efficient design, which is estimated to result in 20 to 30 percent fuel savings compared to current vessels in the existing LR2 fleet, we believe these newbuildings will be very attractive to our customers. Furthermore, we believe the vessel deliveries are well-timed to benefit from expected improvements in refined product and global crude oil tanker market fundamentals."
At a cost of approximately $47 million each, Teekay Tankers said the agreement with STX includes a "favourable instalment payment schedule" that allows them to pay the majority of the purchase price due upon delivery, which is expected in late 2015 and early 2016.
Payments until then will be covered by the tanker owner's existing funds, but it aims to secure long-term debt financing for the delivery time payments.
The order comes with options for an additional twelve vessels.
John Fredriksen has predicted a tanker led recovery to the current shipping slump, a view clearly shared by another New York-listed tanker company, Scorpio Tankers Inc. [NYSE:SNG] (Scorpio), who have announced new vessel orders at South Korean shipyards every month since December 2012.
